Designer Apparel and Footwear (Ready-To-Wear) in Canada

2020 IMPACT

Lockdown store closures and reduced consumer spending cause a sharp decline in sales of designer apparel and footwear (ready-to-wear)

In 2020, all categories of designer apparel and footwear (ready-to-wear) experienced a severe decline in sales, as a consequence of the store closures mandated during the lockdown phase in Canada. Post-lockdown, consumers made fewer purchases overall from designer apparel and footwear (ready-to-wear) brands in the year because of working from home more, cancellations of social gatherings and events, and ongoing concerns over job stability and the economy.

Casualwear supported as consumers stay at home and limit social interaction

Casualwear and accessories also experienced decline in 2020 but sales were more resilient than other apparel categories. Loungewear increased in popularity as consumers stayed at home more, both working from home and ensuring social interactions were limited.

E-commerce is the clear winner in 2020

Store-based retailers, including mono-brand luxury specialist retailers and luxury department stores, lost distribution share to e-commerce in 2020 as customers turned more to online purchasing due to lockdown store closures and subsequent hesitation among shoppers to return to stores in the reopening phase. E-commerce was the only retail channel to show positive growth in designer apparel and footwear (ready-to-wear) in 2020.

RECOVERY AND OPPORTUNITIES

Recovery expected to be slow as the impact of COVID-19 lingers

Designer apparel and footwear (ready-to-wear) will begin to see a recovery in 2021 but it will take some time for value sales to return to pre-pandemic levels. This is likely not to be until the second half of the forecast period.

Spending restraint may be eased by the offer of functional luxury apparel and footwear

Economic challenges and consumer worries about job stability and incomes will continue to hamper the recovery of designer apparel and footwear (ready-to-wear) in the forecast period. Wealthy individuals will be the main driver of the sales recovery, as they tend to be more insulated from economic downturn and are expected to increase in number in the forecast period.

Physical stores implement strong health and safety measures and innovative in-store experiences to regain customers

E-commerce is likely to continue to increase its share in the forecast period, as consumers of designer apparel and footwear (ready-to-wear) become more accustomed to its advantages, having used the channel more extensively during the COVID-19 lockdown in 2020. However, luxury consumers are expected to return to in-store shopping, although with a degree of hesitancy among some shoppers.